Texas Capital Bancshares, Inc.

Good afternoon. Thank you for attending the Texas Capital Bank Shares Q3 2025 earnings call. My name is Matt, and I'll be the moderator for today's call. All lines will be muted during the presentation portion of the call for an opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad. I'd like to pass the conference over to our host, Jocelyn Kukulka, head of investor relations. Jocelyn, please go ahead.

Good morning, and thank you for joining us for TCBI's third quarter 2025 earnings conference call. I'm Jocelyn Kukulka, Head of Investor Relations. Before we begin, please be aware this call will include forward-looking statements that are based on our current expectations of future results or events. Forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from these statements. Our forward-looking statements are as of the date of this call, and we do not assume any obligation to update or revise them. Today's presentation will include certain non-GAAP measures, including but not limited to adjusted operating metrics, adjusted earnings per share, and return on invested capital. For a reconciliation of these and other non-GAAP measures to the corresponding GAAP measures, please refer to our earnings press release and our website. Statements made on this call should be considered together with the cautionary statements and other information contained in today's earnings release. our most recent annual report on Form 10-K, and subsequent filings with the SEC. We will refer to slides during today's presentation, which can be found along with the press release in the investor relations section of our website at TexasCapital.com. Our speakers for the call today are Rob Holmes, Chairman, President, and CEO, Matt Scurlock, CFO. At the conclusion of our prepared remarks, our operator will open up the call for Q&A. I'll now turn over the call to Rob for his opening remarks.

In September of 2021, we announced a detailed and historically ambitious four-year plan to transform Texas Capital into Texas's first full-service financial services firm worthy of banking the best clients in our markets. We said at the time that the magnitude and timeline associated with this wholesale rebuilding of the firm was the result of an immense opportunity to create something of unique and durable value. And that achievement of our vision would be defined by a series of specific and important measures of strategic and financial successes. Despite the many expected and unforeseen challenges, we've been steadfast in our strategic objectives, transparent with necessary improvements to our business model and unwavering in our commitment to deliver a differentiated offering for our clients and result for our shareholders. Thanks to the resolute work of our team, I am incredibly pleased to report third quarter results which confirm delivery of the remaining goal described at the beginning of our transformation in September of 2021. Achievement of a 1.3% return on average assets, well above the communicated target of 1.1%. These results mark an important milestone and are a financial acknowledgement of the continued intensity in which we deliver distinctive value to our clients through our wholly differentiated and increasingly scalable platform. When we began this transformation in 2021, we noted specifically the material gaps in our balance sheet and business model that require resolution to facilitate consistently high quality client outcomes acceptable risk adjusted returns, and ultimately enhanced franchise value. A critical early component of earning the right to bank the best clients in our markets was moving away from the legacy approach of relying on leverage to deliver financial performance, and instead building a platform characterized by its resilience to market and rate cycles. Since that September 2021 announcement, we've added 247 basis points of tangible common equity, the most of any bank in the country with over $20 billion in assets, and finished the third quarter with tangible common equity to tangible assets of 10.25%, an all-time high for the firm. This exceptionally strong capital position, coupled with liquid assets of 24%, continues to allow for consistent and proactive market-facing posture as we are now distinctly capable of supporting the diverse and broad needs of our clients in any operating environment. Prior to our transformation, existing operational silos resulted in limited scalability and disjoined market coverage. After developing well-defined and disciplined organizational routines early in the transformation, The extensive investments made across the franchise to deliver a higher quality operating model is facilitating the intended results. Our now cohesive platform enabled the entire company to effectively contribute to a third quarter that was the best in the firm's history, featuring record revenue of $340 million, record pre-provision net revenue of $150 million, record net income to common of $101 million, record earnings per share of $2.18, and record tangible book value per share of $73.02. As we also described in 2021, the foundation of our transformation is the deliberate evolution of our Treasury Solutions platform. The firm is no longer overly reliant on disconnected, high-cost, high-beta national deposit verticals. Index deposits now comprise only 6% of average total deposits and are down nearly $10 billion from 2020. This dramatic rebuilding of our funding base is in large part attributable to our best in class payments offering, which enables us to successfully compete for, win, and serve as the primary operating relationship for the best clients in our markets. Our firm now provides faster, more seamless, client onboarding than the major money center banks and ongoing frictionless client journeys that match or exceed theirs with high touch, local service, and local decisioning. This sustained focus resulted in an industry leading 91% increase in treasury product fees over the past four years. The strength of our balance sheet, breadth of our product offerings, and quality of our talent now ensure our clients never outgrow the services we can provide for them. Historically, our relatively low client relevance was in part result of a narrow product offering, leading to over-dependence on loan growth to drive earnings. We now approach the market based on our clients' needs, not our own, with tailored offerings for each stage of their life cycles and double the number of client-facing professionals providing advice, not just capital. This cultural and structural shift is driving material success with targeted clients and prospects of all sizes. The firm is now a top five Texas based originator of SBA loans, evidencing our commitment and ability to effectively serve small businesses. We now have industry specific coverage aligned with businesses that comprise 100% of the addressable Texas economy. And we built the first full service investment bank in the state. achieving one of the most successful launches in history. This unique and sustainable competitive positioning results in over 90% of the new clients choosing Texas Capital for additional products and services alongside traditional bank debt, signaling our increasing relevance and supporting the largest organic non-interest income growth rate of any bank in the country with more than $20 billion in assets over the last four years. Strong execution across each area we noted for improvement is supported by a highly disciplined and analytically rigorous capital allocation process focused solely on driving long-term shareholder value. We have and continue to bias capital towards franchise accretive client segments evidenced by our commercial loan growth when excluding PPP loans and the divestiture of the premium finance sub of $5.3 billion or nearly 80% since 2020. And in times of market dislocation, we repurchased 12 percent of shares outstanding at a weighted average price of $59 per share. Taken together, we accomplished the most successful bank transformation in the last 20 years and are increasingly the first call for the premier clients at each of the markets we serve. Intentional decisions along the journey have positioned us to deliver attractive through cycle shareholder returns with both higher quality earnings and a lower cost of capital as we continue to scale high value businesses through increased client adoption, improved client journeys, and realized operational efficiencies. All timeless objectives we intend to remain focused on and consistent with creating lasting value. None of this would be possible without the incredible commitment, creativity, and professionalism demonstrated by the Texas Capital employees. Your belief in a long-term vision of the firm, perseverance in the face of, at times, intense skepticism, and continued dedication to driving positive outcomes for our clients is the leading force behind the transformation. It is truly remarkable to see the talent on this platform and the culture we are defining with our actions every day. I look forward to continuing to partner with each of you as we never stop working to build something special for our clients who deserve nothing less. Thank you for your continued interest in and support of our firm. I'll turn it over to Matt for details on the financial results.